Most members of parliament believe taxes will be increased to fund public services in the aftermath of the coronavirus crisis, according to a research.
A survey of 75 MPs across all major parties showed 72 per cent agreed taxes would increase while 83 per cent thought the state would play a greater role in the economy post-Covid.
Almost two-thirds of MPs backed a pay rise for NHS and care workers, while more than half (56 per cent) said the same was true of other key workers, such as bus drivers.
Some 73 per cent agreed the government would be forced to make tough spending choices in the time following the pandemic, but just 40 per cent backed any form of public services spending cuts.
The survey was conducted by The House and published by Politics Home.
The UK government is set to be out of pocket to the tune of £300bn following the coronavirus crisis, as tax receipts drop and public spending rockets. This would be the largest single-year deficit since the Second World War.
In order to fill the hole in the public purse, the government is likely to raise taxes — particularly if most MPs agree taxes must be raised to support public spending.
Rachael Griffin, tax and financial planning expert at Quilter, said in the long-term the Treasury was likely to hit income tax rates.
She also suggested a “one-off or ongoing levy on personal wealth” could be implemented in the UK as this would rebalance the wealth distribution and provide a significant boost to government revenue.
This would most likely take the form of changes to capital gains tax and inheritance tax, she added.
“One thing is clear: anything and everything will be on the table, and we will see a flurry of fiscal changes from the government in the months and years ahead that will radically alter the tax landscape.
“Access to quality financial advice is going to prove vital in managing these changes.”
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